The real interest rate is 4 percent a year. When the inflation rate is zero, the nominal interest rate is approximately ________ percent a year; and when the inflation rate is 2 percent a year, the nominal interest rate is approximately ________

If the rate of inflation in the economy is steady at 5 percent per year, how does the short-run Phillips curve predict that the unemployment rate will be changing, if at all? Does your answer change if inflation in the economy is 0 percent?

Illustrate your answer with a Phillips curve.

An increase in the U.S. money supply would cause the value of the dollar to ________ and U.S. net exports to ________ in the short run using a Keynesian model

A) fall; fall B) fall; rise C) rise; rise D) rise; fall